Legal Definitions - offering

Definition: An offering is when a company sells its securities (like stocks or bonds) to investors. This can be done in two ways: as a public offering or as a private placement.

Example: Let's say a company called XYZ wants to raise money to expand its business. It can do this by offering its stocks to the public. This means anyone can buy a share of the company by paying the price set by XYZ. Another way is to offer the stocks to a select group of investors, like wealthy individuals or investment firms. This is called a private placement.

Explanation: An offering is a way for a company to raise money by selling its securities to investors. The example shows how a company can do this by either offering its stocks to the public or to a select group of investors. By doing so, the company can get the funds it needs to grow its business or finance its operations.